How to tackle cloud computing – ask the experts
December 25, 2011
I need to become more technology savvy and would like to invest in some good cloud computing software to store our company’s data. How should I go about this?”
A: Cloud computing is an IT innovation gaining momentum world-wide. Cloud computing effectively outsources parts of your IT structure and has a number of benefits including allowing IT to focus on providing solutions and innovation to your business. Another benefit is that costs associated with cloud-based IT services are operational in nature so there’s no need for capital investment and fixed cost structures. Added to this data volumes continue to grow exponentially creating problems for data back-ups and archiving.
So how to go about moving to cloud-computing?…
As with any problem you will need to define what it is you wish to achieve, whether it’s reduced costs, increased reliability or a re-focussed IT department. You will need to identify providers you think are right for you before asking them to show-case their solution.
You should take a cautionary approach and include the following questions:
Availability & Reliability – ensure the provider has a Service Level Agreement that looks right for your business needs. Do they have a track-record of continuity (how did they fare during the earthquakes?). Do they have the processes and procedures expected from a cloud-based provider?
Security – in the cloud data is entrusted to a third party and your data may be stored along with data from other businesses (security concerns are often quoted as the reason for not moving to the cloud) and you will need to make sure legal and regulatory requirements can be met and that your perspective provider has a track-record of maintaining high levels of data security.
Data mobility – you will want to ensure that if circumstances change (for instance you want to change providers or your provider is bought out) you can make a move to another provider without risk to your data and/ or your business operations.
Location – There are privacy issues with data storage and you will want to work with a provider with a data-centre in a good location that minimises risks such as seismic activity or flooding. A data-centre in this country is preferred as other countries will have different regulations in respect to data (legislation in different countries can be contradictory).
Cloud computing continues to gain momentum and the recent earthquakes have resulted in more businesses looking at the cloud to provide solutions to their IT needs. A robust process of due-diligence on perspective providers will enable you to gain the comfort to make the move to cloud-computing with confidence.
David Leighton is KPMG Head of IT Risk and Advisory for the South Island
A: Find a customer focused IT service provider – these are a rare breed. Be warned many – IT service providers will recommend solutions that are over engineered. Too many will convince you that you need the security of the treasury department. Challenge them on all recommendations that become an inconvenience to you or cost lots.
My favourite cloud solutions for SMEs are:
1) Microsoft Exchange in the cloud for all email, calendar and contact storage (yes -Microsoft have a cool solution targeted at SME market);
2) Xero.com – Accounting – it still blows me away when I hear of people chained to old financial reporting systems;
3) Dropbox.com file storage in the cloud.